Online Gaming Act 2025: Industry Leaders Welcome the Regulatory Framework

The Ministry of Electronics and Information Technology (MeitY), as the nodal Ministry, has prepared the Promotion and Regulation of Online Gaming Rules, 2026 (“the Rules”), which will come into force on 1st May, 2026. The Rules have been finalised after extensive inter-Ministerial consultations and vetting by the Department of Legal Affairs. India’s Gaming Industry leaders welcome the regulatory framework coming with Online Gaming Act 2025.

Online Gaming Act 2025 will come into force on 1st May

As per the press release, At the heart of this new approach is the creation of the Online Gaming Authority of India (OGAI). Operating as an online regulator with its headquarters in New Delhi, OGAI shall include members from various ministries such as those of Home Affairs, Finance, and Sports. This multiparty organization will be responsible for game classification, investigating any complaints received, and creating a rigorous black list of all the money games on the Internet.

PROGA 2025 brings much needed clarity to India’s Esports Ecosystem

Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming: “The enactment of the PROG Act, 2025 brings much-needed clarity and structure to India’s esports ecosystem. The provision for formal registration of titles as esports by publishers is a particularly welcome move, as it eliminates the risk of misrepresentation and prevents proxy real-money platforms from self-declaring themselves as esports.

The introduction of a 90-day determination process strikes the right balance between regulatory scrutiny and certainty. For players, teams, tournament operators, broadcasters, sponsors, and other ecosystem participants, this creates a clear signal: once registered, an esport is unequivocally recognized as a legitimate sporting discipline. The explicit exclusion of online money games from being classified as esports is another critical step. It removes ambiguity and reinforces that competitive gaming is a skill-driven pursuit independent of any wagering or monetary constructs.

It is also encouraging to see that the framework recognizes esports as a publisher-led ecosystem rather than a federation-led one. One that is aligned with technology and licensing principles under MeitY, while governance as a sport continues under the National Sports Governance Act, 2025. This dual alignment ensures both regulatory clarity and sporting legitimacy without creating parallel or conflicting structures. The composition of the authority, bringing together key ministries across technology, finance, sports, law, and internal affairs, is equipped for informed decision-making in a rapidly evolving sector.

Overall, this level of clarity is a significant positive for the industry and sets a strong precedent globally. As early builders of India’s esports ecosystem, we see this as an opportunity to contribute towards shaping global benchmarks through initiatives like the Esports Nations Cup, while continuing to strengthen grassroots pathways and competitive structures in the country through tournaments like the BGMI Masters Series.

Our only suggestion would be to align the terminology with global conventions by adopting ‘esports’ instead of ‘e-sports’ to ensure consistency with international standards.”

Animesh Agarwal, Co-founder and CEO, S8UL: “The Promotion and Regulation of Online Gaming Act, 2025 is a positive step forward for Indian esports. It brings much-needed structure to the ecosystem and clearly separates esports from online money gaming, helping address long-standing confusion around the space. For organisations like S8UL, this direction allows us to take a more long-term view – investing in talent, scaling teams, and building globally competitive structures with greater confidence.

That said, there are still important gaps that need to be addressed. Esports teams and players continue to face a lack of clarity on financial frameworks, with ongoing challenges in how banks differentiate between esports earnings and real money gaming. There is also no clear pathway today to formally register esports teams as entities within a defined structure. More importantly, players and organisations still lack comprehensive protections under a clear regulatory framework. Addressing these areas will be critical for the ecosystem to move from early structure to full legitimacy and long-term sustainability.”

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Online Gaming Act 2025: A landmark step towards structured India’s Gaming Ecosystem

Mr Vishal Parekh, Chief Operating Officer, CyberPowerPC India,”The enactment of the Online Gaming Act 2025 is a landmark step towards bringing structure and accountability to India’s gaming ecosystem. By formally recognising esports as a distinct, skill-based category, it addresses long-standing misconceptions that have held the industry back. The introduction of clear guardrails and enforcement mechanisms will play a crucial role in building trust, not just among players and families, but also among global partners, brands and investors looking at India as a growth market.

As esports continues to gain prominence in international multi-sport events, this move strengthens India’s position in the global competitive gaming landscape. With the right ecosystem support from infrastructure to training and hardware access, we can unlock significant economic and talent-driven opportunities for the country.”

Mr Sagar Nair, Head of Incubation, LVL Zero Incubator, (LVL Zero Incubator, a 100-day sprint designed to accelerate early-stage gaming startups across India), “The Promotion and Regulation of Online Gaming Act, 2025 is a pivotal moment for early-stage gaming startups in India. Clarity in regulation is one of the most critical enablers for innovation, and this framework helps remove long-standing ambiguity that founders have had to navigate. By clearly distinguishing esports and non-money gaming from online money gaming, the Act creates a more predictable environment for builders to focus on creating high-quality gaming experiences, scalable IPs, and globally relevant products.

For emerging startups, this is an opportunity to align with a more structured ecosystem, one that encourages creativity, responsible design, and long-term value creation. With the right support across funding, mentorship, and policy stability, India has the potential to become a hub for game development and interactive media innovation.”

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